Jefferies said stronger margins and healthy premium demand helped LG Electronics India Ltd. deliver better-than-expected results for the June quarter. LG Electronics India reported a 27% year-on-year increase in profit after tax for the June 2026 quarter, beating Jefferies' estimate as improved margins supported earnings.
The brokerage maintained its buy rating on the company with a target price of Rs 1,810. This implies an upside potential of about 14.6% from the current market price of Rs 1,580.
Revenue grew 15% from a year earlier, driven by strong demand for premium products and growth in both volumes and value. The company recorded double-digit growth across all product categories, with televisions and washing machines leading the performance.
Strong summer demand also lifted sales of air conditioners and refrigerators. Meanwhile, the recently launched LG Essential Series helped the company increase its presence in Tier 2 and Tier 3 markets.
Operating profit margin rose to 12.5%, up 110 basis points from the previous year and 80 basis points sequentially. Jefferies said the margin improvement was supported by a richer premium product mix, better operating leverage and growth in exports.
The business-to-business segment also performed well during the quarter. LG Electronics India's Information Display business benefited from government and institutional orders. High-margin annual maintenance contract revenue, which does not involve hardware sales, continued to expand.
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Morgan Stanley Maintains Overweight Rating
Morgan Stanley also maintained its overweight rating on the stock, with a target price of Rs 1,610, indicating an upside potential of about 1.9%. The brokerage highlighted the strong performance of the home entertainment division, where revenue increased 22% and the operating margin expanded by 340 basis points to 19%.
LG Electronics India is also well positioned for the upcoming festive season, covering Onam, Durga Puja and Diwali, supported by broad-based demand across categories.
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